Tax proposal called a forced spending curb

A lawmaker says the amendment is 'not perfect' but would make local governments thriftier.

January 17, 2008|By Martin E. Comas, Sentinel Staff Writer

EUSTIS -- It's not a perfect way to lower property taxes, but if Florida voters approve Amendment 1, it will force local governments to control spending, state Sen. Carey Baker said Wednesday.

"We feel we need to tighten our belts and this is the way to do it," Baker, R-Eustis, told a receptive crowd of about 100 people packed into the American Legion Hall for a Kiwanis Club of Eustis luncheon.

"It's not a perfect product . . . but we're trying to fix the system to the best of our ability."

In general, the property-tax reform amendment on the Jan. 29 ballot would expand the state's current $25,000 homestead exemption by about $15,000. It also would allow most homeowners to transfer their Save Our Homes tax savings when they move, up to a $500,000 limit.

The tax reform is needed, according to Baker, because property taxes have risen steadily since 2001 despite the influx of new residents into the state.

In fast-growing Lake County, the per capita property tax in 2001 was $204.80, but by 2006, per capita property taxes rose about 104 percent to $417.90, according to the Florida House of Representatives.

"There is a feeling that property taxes are going up too high," Baker said.

He added that cities and counties can levy and raise taxes on residents based on their property "with no account on income or whether you can afford it."

Under the current property tax structure, a family that moves into a new home could pay up to three times more in property taxes than a neighbor who has lived in a similarly valued house for several years, Baker said.

Baker called that "patently unfair."

He said that is why making the Save Our Homes savings portable would benefit young families who plan to have additional children and move into a bigger home. It also would help older couples who have lived in their homes for decades and want to move into smaller residences, he said.

Baker acknowledged that proponents face a tough battle in needing to have 60 percent of Florida voters approve the measure.

While Baker made his pitch in Eustis, Gov. Charlie Crist toured the state by bus Wednesday, stopping in Volusia and Orange counties to promote the tax measure and answer questions.

Eustis City Commissioner and Kiwanis member Scott Ales, who attended the Eustis luncheon, said the amendment will force governments to take a close look at their budgets. He said he would not support any increase in taxes or fees in the city's budget to make up the shortfall in revenue.

"Every budget has room for efficiency, and we'll have to look at those opportunities," Ales said. "I think its clear there's not going to be a problem in making a budget."

School officials opposing the amendment argue that it would mean less money for the region's already financially strapped classrooms.

Statewide, schools could lose as much as $161.3 million in the first year after the amendment passes and about $1.6 billion after five years, according to the the Florida Legislature's Office of Economic and Demographic Research.

Lake School Board member Jimmy Conner, who attended Wednesday's luncheon and listened to Baker, said he needed to study details of the amendment before he could comment on whether he supports the proposal.

Conner filed papers this week to run for Lake County commissioner.

"Taxes and spending are out of control, I will say that," Conner said after Baker's presentation. "I like the concept of forcing less spending."

Opponents also have argued that if the amendment passes, Florida could face a costly legal challenge at the U.S. Supreme Court because it will make it more expensive for people wanting to move into the state.

"It's not perfect," Baker said of the amendment. "But overall, I think it's a step in the right direction."